SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 18 – SEGMENT INFORMATION

As of December 31, 2022, we operated through three reportable business segments: triple-net leased properties, SHOP and office operations. In our triple-net leased properties reportable business segment, we invest in and own senior housing and healthcare properties throughout the United States and the United Kingdom and lease those properties to healthcare operating companies under triple-net or absolute-net leases that obligate the tenants to pay all property-related expenses. In our SHOP reportable business segment, we invest in senior housing communities throughout the United States and Canada and engage independent operators, such as Atria and Sunrise, to manage those communities. In our office operations reportable business segment, we primarily acquire, own, develop, lease and manage MOBs and life science, research and innovation centers throughout the United States. Information provided for “non-segment” includes management fees and promote revenues, net of expenses related to our third-party institutional capital management business, income from loans and investments and various corporate-level expenses not directly attributable to any of our three reportable business segments. Assets included in “non-segment” consist primarily of corporate assets, including cash, restricted cash, loans receivable and investments, and miscellaneous accounts receivable.

Our chief operating decision maker evaluates performance of the combined properties in each reportable business segment and determines how to allocate resources to those segments, in significant part, based on NOI and related measures for each segment. We define NOI as total revenues, less interest and other income, property-level operating expenses and third party capital management expenses. We consider NOI useful because it allows investors, analysts and our management to measure unlevered property-level operating results and to compare our operating results to the operating results of other real estate companies between periods on a consistent basis. In order to facilitate a clear understanding of our historical consolidated operating results, NOI should be examined in conjunction with net income attributable to common stockholders as presented in our Consolidated Financial Statements and other financial data included elsewhere in this Annual Report on Form 10-K. See “Non-GAAP Financial Measures” included elsewhere in this Annual Report on Form 10-K for additional disclosure and reconciliations of net income attributable to common stockholders, as computed in accordance with GAAP, to NOI.

Interest expense, depreciation and amortization, general, administrative and professional fees, income tax expense and other non-property-specific revenues and expenses are not allocated to individual reportable business segments for purposes of assessing segment performance. There are no intersegment sales or transfers.

Summary information by reportable business segment is as follows (dollars in thousands):

	For the Year Ended December 31, 2022
	SHOP		Office Operations		Triple-Net Leased Properties		Non-Segment		Total
Revenues:
Rental income	$	—	$	801,159	$	598,154	$	—	$	1,399,313
Resident fees and services	2,651,886		—		—		—		2,651,886
Third party capital management revenues	—		2,448		—		23,751		26,199
Income from loans and investments	—		—		—		48,160		48,160
Interest and other income	—		—		—		3,635		3,635
Total revenues	$	2,651,886	$	803,607	$	598,154	$	75,546	$	4,129,193
Total revenues	$	2,651,886	$	803,607	$	598,154	$	75,546	$	4,129,193
Less:
Interest and other income	—		—		—		3,635		3,635
Property-level operating expenses	2,004,420		257,003		15,301		—		2,276,724
Third party capital management expenses	—		—		—		6,194		6,194
NOI	$	647,466	$	546,604	$	582,853	$	65,717	1,842,640
Interest and other income									3,635
Interest expense									(467,557)
Depreciation and amortization									(1,197,798)
General, administrative and professional fees									(144,874)
Loss on extinguishment of debt, net									(581)
Transaction expenses and deal costs									(51,577)
Allowance on loans receivable and investments									(19,757)
Other									(58,268)
Income from unconsolidated entities									28,500
Gain on real estate dispositions									7,780
Income tax benefit									16,926
Loss from continuing operations									(40,931)
Net loss									(40,931)
Net income attributable to noncontrolling interests									6,516
Net loss attributable to common stockholders									$	(47,447)

	For the Year Ended December 31, 2021
	SHOP		Office Operations		Triple-Net Leased Properties		Non-Segment		Total
Revenues:
Rental income	$	—	$	794,297	$	653,823	$	—	$	1,448,120
Resident fees and services	2,270,001		—		—		—		2,270,001
Third party capital management revenues	—		8,384		—		11,712		20,096
Income from loans and investments	—		—		—		74,981		74,981
Interest and other income	—		—		—		14,809		14,809
Total revenues	$	2,270,001	$	802,681	$	653,823	$	101,502	$	3,828,007
Total revenues	$	2,270,001	$	802,681	$	653,823	$	101,502	$	3,828,007
Less:
Interest and other income	—		—		—		14,809		14,809
Property-level operating expenses	1,811,728		257,001		15,335		—		2,084,064
Third party capital management expenses	—		1,798		—		2,635		4,433
NOI	$	458,273	$	543,882	$	638,488	$	84,058	1,724,701
Interest and other income									14,809
Interest expense									(440,089)
Depreciation and amortization									(1,197,403)
General, administrative and professional fees									(129,758)
Loss on extinguishment of debt, net									(59,299)
Transaction expenses and deal costs									(47,318)
Allowance on loans receivable and investments									9,082
Other									(37,110)
Income from unconsolidated entities									4,983
Gain on real estate dispositions									218,788
Income tax expense									(4,827)
Income from continuing operations									56,559
Net income									56,559
Net income attributable to noncontrolling interests									7,551
Net income attributable to common stockholders									$	49,008

	For the Year Ended December 31, 2020
	SHOP		Office Operations		Triple-Net Leased Properties		Non-Segment		Total
Revenues:
Rental income	$	—	$	799,627	$	695,265	$	—	$	1,494,892
Resident fees and services	2,197,160		—		—		—		2,197,160
Third party capital management revenues	—		8,675		—		6,516		15,191
Income from loans and investments	—		—		—		80,505		80,505
Interest and other income	—		—		—		7,609		7,609
Total revenues	$	2,197,160	$	808,302	$	695,265	$	94,630	$	3,795,357
Total revenues	$	2,197,160	$	808,302	$	695,265	$	94,630	$	3,795,357
Less:
Interest and other income	—		—		—		7,609		7,609
Property-level operating expenses	1,658,671		256,612		22,160		—		1,937,443
Third party capital management expenses	—		2,315		—		—		2,315
NOI	$	538,489	$	549,375	$	673,105	$	87,021	1,847,990
Interest and other income									7,609
Interest expense									(469,541)
Depreciation and amortization									(1,109,763)
General, administrative and professional fees									(130,158)
Loss on extinguishment of debt, net									(10,791)
Transaction expenses and deal costs									(29,812)
Allowance on loans receivable and investments									(24,238)
Other									(707)
Income from unconsolidated entities									1,844
Gain on real estate dispositions									262,218
Income tax benefit									96,534
Income from continuing operations									441,185
Net income									441,185
Net income attributable to noncontrolling interests									2,036
Net income attributable to common stockholders									$	439,149

Assets by reportable business segment are as follows (dollars in thousands):

	As of December 31,
Assets:	2022				2021
SHOP	$	12,369,218	51.2	%	$	12,811,611	51.8	%
Office operations	6,558,416		27.1		6,341,888		25.7
Triple-net leased properties	4,272,303		17.7		4,578,534		18.5
Non-segment	957,903		4.0		985,753		4.0
Total assets	$	24,157,840	100.0	%	$	24,717,786	100.0	%

Capital expenditures, including investments in real estate property and development project expenditures, by reportable business segment are as follows (dollars in thousands):

	For the Years Ended December 31,
Capital expenditures:	2022		2021		2020
SHOP	$	423,420	$	1,463,551	$	191,891
Office operations	472,662		245,546		372,475
Triple-net leased properties	4,614		92,924		42,930
Total capital expenditures	$	900,696	$	1,802,021	$	607,296

Our portfolio of properties and mortgage loan and other investments are located in the United States, Canada and the United Kingdom. Revenues are attributed to an individual country based on the location of each property. Geographic information regarding our operations is as follows (dollars in thousands):

	For the Years Ended December 31,
Revenues:	2022		2021		2020
United States	$	3,652,327	$	3,363,197	$	3,381,357
Canada	449,091		434,862		389,205
United Kingdom	27,775		29,948		24,795
Total revenues	$	4,129,193	$	3,828,007	$	3,795,357

	As of December 31,
Net real estate property:	2022		2021
United States	$	18,168,224	$	18,562,738
Canada	2,782,350		3,007,008
United Kingdom	209,876		247,092
Total net real estate property	$	21,160,450	$	21,816,838